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Companies looking to expand their sales through marketing techniques should be aware of the power and potential of Marketing Development Funds (MDFs). In this guide, we will provide you with all the necessary information about MDFs – from what they are to how they work and best practices for making use of them in order to optimize your marketing ROI. Don’t miss out on a great opportunity; equip yourself with knowledge today!

1. Introduction to Marketing Development Funds (MDFs)

Manufacturers and vendors can leverage Marketing Development Funds (MDFs) to support their resellers’ sales initiatives. These funds are essentially a cost-sharing agreement, where the manufacturer or vendor contributes part of the necessary capital for marketing and selling campaigns initiated by the reseller. MDFs provide an opportunity for mutual success between manufacturers/vendors and resellers as both parties benefit from increased visibility in the marketplace.

When it comes to obtaining the greatest value from investments in marketing, MDFs are an ideal choice. These funds can be used to boost brand recognition and generate leads through activities like advertising, trade shows, events, and other promotional possibilities. They will help businesses successfully close more deals and reach their desired goals much faster!

2. How MDFs Work

MDFs reward resellers for investing in marketing and sales activities that boost the manufacturer’s products. As such, these manufacturers typically provide a portion of their reseller’s total expenditure as an incentive. These funds are then used by the reseller to further support their promotional endeavours.

Manufacturers often attach MDFs to certain marketing and sales initiatives, such as trade shows or advertising campaigns. To acquire these funds, resellers must present an idea of the activity they are planning on executing and how the MDFs will help facilitate it. Once the manufacturer approves this proposal, those resources become available for use by that organization.

3. Benefits of Using MDFs

There are several benefits to using MDFs, including:

  • Increased brand awareness: MDFs can help resellers increase their brand awareness by funding marketing and advertising campaigns that promote the manufacturer’s products.
  • Increased sales: By supporting resellers’ marketing and sales efforts, MDFs can help increase sales for both the manufacturer and the reseller.
  • Improved ROI: MDFs can help resellers achieve a better return on their marketing investment by providing additional funds to support their campaigns.
  • Stronger relationships: MDFs can help strengthen the relationship between the manufacturer and reseller by providing a financial incentive for both parties to work together.

4. Best Practices for Using MDFs

To make the most of MDFs, it’s essential to follow some best practices, including:

  • Clearly define the goals and objectives of your MDF program.
  • Develop a detailed plan for how the MDF funds will be used.
  • Communicate regularly with your resellers to ensure they understand how the MDF program works.
  • Provide clear guidelines for how the MDF funds can be used.
  • Measure the success of your MDF program regularly and adjust it as needed.

5. Setting Up a Successful MDF Program

To set up a successful MDF program, follow these steps:

  1. Define your MDF program goals and objectives.
  2. Identify your resellers and establish a budget for your MDF program.
  3. Develop clear guidelines for how the MDF funds can be used.
  4. Establish a process for resellers to submit proposals for MDF funds.
  5. Review and approve proposals based on the program guidelines and available budget.
  6. Provide funds to approved resellers.
  7. Monitor and measure the success of the MDF program regularly.
  8. Adjust the program as needed to achieve your goals and objectives.

6. Measuring MDF Success

To measure the success of your MDF program, track the following metrics:

  • Sales revenue generated by resellers using MDF funds.
  • ROI on MDF spend.
  • Number of new customers acquired through MDF-funded marketing and sales activities.
  • Increase in brand awareness and recognition among target audiences.

7. Common Mistakes to Avoid with MDFs

Some common mistakes to avoid when using MDFs include:

  • Failing to clearly define program goals and objectives.
  • Not providing clear guidelines for how the MDF funds can be used.
  • Allocating funds to resellers without a clear plan or proposal.
  • Focusing too heavily on short-term sales goals at the expense of long-term brand building.
  • Neglecting to monitor and measure program success regularly.

8. Case Studies: Successful MDF Programs

Here are a few examples of successful MDF programs:

  • The HP PartnerONE program has had a tremendous impact on the success of both HP and its resellers. By offering much-needed MDF funds, Partners are able to generate increase visibility for their business as well as expand marketing activities that promote HP products to drive more sales – resulting in higher revenue generated by both parties!
  • Cisco Systems’ Marketing Velocity program supplies resellers with the tools and resources they need to grow their marketing and sales efforts, such as MDF funds, training and more. Thanks to this initiative, reseller partners have managed to create more leads, close deals faster than ever before – all while enjoying increased ROI from their marketing investments!
  • Microsoft’s Co-Op Advertising program provides MDF funds to resellers, allowing them to promote Microsoft products through efficient and effective marketing channels. This successful initiative helps increase the sales of vendors while creating a strong bond between them and the company – boosting brand awareness along with it!

9. Future of MDFs

As the marketing world continues to change, MDFs will remain a vital asset for companies aiming to expand their sales through both marketing and advertising campaigns. Yet, as digital marketing develops in prominence, MDF programs may need an update if they are going to stay relevant with shifting trends and consumer behavior.


If you’re a business seeking to prosper through marketing and sales, taking advantage of Marketing Development Funds (MDFs) is indispensable. This tool offers financial assistance for resellers who wish to invest in activities that strengthen the manufacturer’s products, allowing businesses to further expand their brand recognition, acquire new leads and close more deals. To maximize your use of MDFs, it’s essential to establish determined program objectives alongside concrete instructions on how funds can be employed; moreover regularly evaluating program successes reaps even more rewards!


Can any business use MDFs?

Manufacturers and vendors typically provide MDF programs to their resellers, but even companies of all shapes and sizes can leverage MDFs in order to boost their marketing strategies and sales initiatives.

How do I know how much MDF funding to offer?

When determining the sum of MDF funding for your organization, take into account numerous factors such as the size and reach of your reseller network, the expected ROI from this initiative, along with any marketing or sales activities you want to execute. With these considerations in mind, you can then allocate an appropriate budget that will meet all program objectives.

What types of marketing activities can MDFs be used for?

MDFs are an invaluable asset in various marketing campaigns, such as advertising, trade shows and events, email marketing initiatives, and social media activities.

How do I measure the success of my MDF program?

Assessing the performance of your MDF program requires keeping track of various metrics, including sales revenue earned by resellers with access to MDF funds, cost-effectiveness and ROI associated with the allocated budget, newly acquired customers as a result of marketing activities funded by MDF, and heightened awareness towards your brand in key markets.

How do I avoid common mistakes when using MDFs?

If you are looking to use MDFs effectively, start by outlining precise program goals and objectives, illustrating how the funds should be spent in a transparent manner, allocating monies based on an organized plan or proposal, keeping both short-term sales plans as well as long-term brand building tactics in balance for best results and ultimately tracking success of the initiative regularly to ensure optimal performance.


MDFs: Marketing Development Funds

ROI: Return on Investment

MDF Program: A program that offers financial assistance to resellers who wish to invest in activities that strengthen the manufacturer’s products.

Resellers: Organizations which purchase finished goods and then resell them through their own distribution networks.

Manufacturer: An organization or business responsible for the production of a product.

Advertising: The act of promoting or publicizing a product, service, or event to attract more customers or attention.

Marketing: The acts of creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society.

Trade Shows: Events where companies display their products and services in an effort to attract new customers.

Email Marketing Initiatives: Programs designed to generate more leads or sales through email campaigns.

Social Media Activities: Actions taken by a company on social media platforms like Facebook, Instagram, Twitter etc., in order to engage with potential customers or build an online presence.

Metrics: Measurable outcomes that are used to evaluate the success of a program or initiative.

Sales Revenue: The total amount of money brought in as a result of selling goods and services.

Cost-Effectiveness: The ratio of the value generated to the amount spent.

Awareness: Knowledge or recognition of a product, brand, service or event.

Brand Building Tactics: Strategies used to create and maintain an image associated with a company, product, or service in order to gain customer loyalty.

Short-Term Sales Plans: Strategies implemented over short periods of time in order to generate more sales.

Long-Term Brand Building Tactics: Strategies developed over extended periods of time in order to build brand recognition and customer loyalty.











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